Paysend launches two products to increase credit
UK FinTech startup Paysend is launching two new products to help customers improve their finances and get their credit scores on track, according to a Wednesday, April 6 press release emailed to PYMNTS.
Credit Builder and Pay Later were developed to help Paysend’s 6.5 million UK customers better manage their money and track their spending, the statement said.
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With Credit Builder, customers can improve their credit score every time they use their Paysend card connected to their Paysend Credit Builder account in the Paysend app. Credit Builder is especially helpful for those with little or no credit history, according to the release.
Credit Builder updates Experian, Equifax and TransUnion on all expenses and payments, and customers can only spend what they have in their accounts, the statement said.
Based on Paysend’s own credit scoring system, Pay Later gives eligible users the chance to spend an additional £100 (around $130) on purchases anywhere Mastercard is accepted, according to the release.
Pay Later is offered without credit checks by external agencies. No interest is charged when customers spend the amount in their Pay Later account. Paysend customers can improve their credit rating by making on-time payments every two weeks, the statement said.
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“Many of our customers have low or no credit scores and limited access to financial products that can help them build a credit footprint and strengthen their financial position,” said Ben Chisell, chief product officer at Paysend, in the press release. “We fill this gap and help our customers contribute positively to their credit score through transactions made through the Paysend platform.”
“Our customers may also need a financial buffer, and we’re providing them with a flexible, controlled way to pay later that combines the convenience of paying directly from the Paysend account with zero interest,” Chisell added in the release. “With Paysend, customers will be able to access additional funds for any purchase and improve their credit footprint while being protected from other credit products that could worsen their financial situation.”